Rates up…bonds took a "3-day-weekend-sell-off" dive for the day…Happy Presidents day!
Have you metChad…lately?
FNMA 4.5% : Lost 28 bps somewhere today. Remember that generally before a 3 day weekend investors tend to pull money out of bonds for some reason. Some of that may be due to the fact that three days of news…and this weekend: major news…will happen before the next session opens for trading. News has such a great effect on the psychology of investors worldwide that we could see tremendous changes of investor mood over 3 days.
DOW: Lost 82 points… There was really nothing to focus on but the stimulus bill and investor confidence is shaky right now. Rumors of "deflation" also have surfaced to make stocks less attractive. (Bonds and fixed income investments become more attractive traditionally in a deflationary environment.)
DJIA 7,850.41 -82.35 NASDAQ 1,534.36 -7.35 SP500 826.84 -8.35
Consumer Confidence came in at a reading of "56.2" vs. an estimated "61.5". The index is created by surveying a few hundred consumers with questions regarding their personal spending, saving and feelings currently.
J.P. Morgan and Citigroup…temporarily suspended foreclosures to wait for more specifics on a Treasury plan to restructure troubled mortgages. Rumors yesterday suggested that help may be on the way for those who are NOT YET in default. Current "help" programs are available only to those who have already defaulted on their mortgages.
Stimulus and HOUSING: The house passed the senate revised version of the stimulus bill and the senate was expected to vote as well today. (The final vote in the senate will be counted after 10pm eastern according to estimates.) The hardest pill: this is the LARGEST spending bill EVER and over 1300 pages long… Even those who are for the spending plan…are nervous voting on something that is impossible to review.
HOUSING hopefully will get a boost with some of the proposed stimulus… Rumors of a 15,000 tax credit surfaced…and that was cut in half again to 7500. However, the final version being voted on tonight includes an $8000 tax credit that would not require repayment. The amount of the credit would equal "10% of the purchase price…up to $8000". FHA loans will be temporarily increased (again) for high cost areas as well.
For more information: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/12/BUSH15O70T.DTL&type=business
Have a great eve!
--
Chad Schauers
Have you metChad?
MetLife Home Loans
406.522.0922
406.522.0924 (fax)
1924 W. Stevens, Ste. 202
Bozeman, MT 59718
Cell: 406 799 8613
ccschauers@metlifehomeloans.com
